Friday, January 19, 2018

P’nyang promise adds to Papua New Guinea's growing LNG war chest

The potential for the P’nyang field to add to Papua New Guinea’s growing LNG reserves looks promising following the drilling of the onshore P’nyang South-2 well, located in the Western Province.

PNG LNG Project operator ExxonMobil has confirmed that the well, one of the key wells to be drilled in PNG this year, had encountered high-quality, hydrocarbon-bearing reservoirs.

“We are currently evaluating the well results and together with our co-venture partners will assess the P’nyang field resource potential and development pathway,” said Liam Mallon, president of ExxonMobil Development Company. “We will work with the government of Papua New Guinea as we undertake this work.”

Mr Mallon said the well was safely drilled to 8,940 feet (2,725 meters), reaching high-quality, hydrocarbon-bearing reservoirs in the Toro and Digimu sandstones, consistent with pre-drilling expectations.

Most importantly, the well has confirmed the southeast extension of the P’yang field.

“When combined with our acquisition of InterOil Corporation, the increase in assessed reserves at Hides in the existing PNG LNG project and our recent Muruk discovery, this adds to our rapidly growing inventory of low cost of supply natural gas in Papua New Guinea,” Mr Mallon said. “We are continuing with our active onshore and offshore exploration program in an effort to provide additional resources to expand existing and planned development projects.”

Oil Search began drilling the P’nyang South-2 well on Oct. 22, 2017. The well is located in petroleum retention license 3, which covers 105,000 acres (425 square kilometers).

ExxonMobil affiliates operate the license with a 49 percent interest in the block. Affiliates of Oil Search, drilling operator, have a 38.5 percent interest and JX Nippon has 12.5 percent interest.